School Income Tax

Due date

April

15th

of each year

Tax rate

3.8907%

Who pays the tax

If you are a Philadelphia resident who receives certain types of unearned income, you must pay School Income Tax. Taxable forms of unearned income include dividends, royalties, short-term rental income, cash lottery winnings from the Pennsylvania Lottery, and some types of interest. Read the official School Income Tax regulations for a complete list of taxable income types.

Important dates

The School Income Tax must be filed annually by April 15. The failure of any person to receive a tax return does not excuse them from the responsibility of filing a return and paying the tax due on time.

Tax rates, penalties, & fees

How much is it?

Tax Year 2017:
3.8907% for Philadelphia residents

Tax Year 2016: 3.9004% for Philadelphia residents

Tax Year 2015:
3.9102% for Philadelphia residents

What happens if you don't pay on time?

You will be charged interest and penalties when you don’t pay taxes on time.

Effective January 1, 2016, for all taxes except Liquor and Real Estate, the monthly interest rate is 0.5%.

Effective January 1, 2014 through December 31st, 2015, for all taxes except Liquor and Real Estate, the monthly interest rate is .416%

Penalties accrue at 1.25% of the unpaid tax for each month or fraction thereof.

Discounts & exemptions

Are you eligible for a discount?

No discounts are available for the School Income Tax. However, if you are a Philadelphia resident for a portion of the year, the tax is adjusted so you only pay for unearned income received during your period of residency.

Can you be excused from paying the tax?

The following types of unearned income are exempt from School Income Tax:

Interest earned on savings and checking accounts

Interest received from bonds or debt obligations of the Commonwealth of Pennsylvania or its political subdivisions